Rocket Mortgage is one of the top mortgage lenders in the U.S., in terms of rates, loan offerings and customer service. Quicken Loans, its parent company, is the largest online mortgage lender, affording Rocket Mortgage many more resources than much of its web-based competition. Possibly because of the online nature of the business, though, its interest rates are very good, even when compared to some of the largest traditional lenders.
While Rocket Mortgage has all the typical loans you’ll normally find across the market, such as jumbo, VA, fixed rate and adjustable-rate mortgages (ARMS), it does have a unique in-house offer. If you don’t have much for a down payment, the YOURgageSM eight- to 30-year mortgage affords you the chance to get a loan for up to 97% of your home’s value, leaving you with a minuscule down payment of 3%.
|30-Year Fixed-Rate||4.56%||2||Compare Rates|
|15-Year Fixed-Rate||4.125%||1.875||Compare Rates|
|5/1 ARM||3.875%||2.25||Compare Rates|
These Rocket Mortgage rates assume a down payment of 25% and a loan size of $175,000.
Overview of Rocket Mortgage
The YOURgageSM loan from Rocket Mortgage and Quicken is one of the more distinctive offerings you’ll come across on the mortgage market. These loans will allow you to finance as much as 97% of your home’s value, leaving you with a minimum down payment of just 3%. Add this in with the fact that you can choose a term from eight to 30 years, and you’ve got an extremely customizable loan. As a matter of fact, you can even refinance with a YOURgage loan.
Although a mortgage opportunity like this might take the headline, Rocket Mortgage also includes fixed rate, ARMs, jumbo, HARP, FHA, USDA and VA loans in its portfolio. Fixed-rate options come in 30- and 15-year terms, while ARMS are available in 5/1, 7/1 and 10/1 intervals. Once the initial five, seven or 10-year initial payment period of you Rocket Mortgage ARM passes, your rate will follow the LIBOR index.
Jumbo loans are mortgages that are worth $453,100 or more, though Rocket Mortgage caps what they offer at $3 million. The company also requires a minimum credit score of 700 for approval, with rates only shown to you once you initiate the application process.
What Your Monthly Mortgage Payments Could Be With Rocket Mortgage
At Rocket Mortgage, the factors that go into what your monthly mortgage payments may be are standard. More specifically, the following conventional fixed rate and adjustable-rate loan projections have assumed a 25% down payment and $175,000 loan to cover the balance of your home’s value.
The approximate payments listed for the 5/1 ARM in the table below are based on an overall term length of 30 years. That means that the interest rate and APR only apply for either five or seven years, respectively, at which point your rate will follow the LIBOR index.
|Mortgage||Interest Rate||Loan Size||Your Payments|
|30-Year Fixed||4.56%||$175,000||$893/month for 30 years|
|15-Year Fixed||4.125%||$175,000||$1,284/month for 15 years|
|5/1 ARM||3.875%||$175,000||$823/month for 5 years; $1,281/month for 25 years|
How Rocket Mortgage Compares to Other Lenders
Regardless of the style of loan, Rocket Mortgage seems to fall on the better half of the market when it comes to its interest rates. This is perhaps because it’s solely online and therefore can afford to have lower rates than lenders with many branches. This is especially true of SunTrust, U.S. Bank and Wells Fargo. Check out the rate comparisons for yourself here:
|Mortgage||Rocket Mortgage||SunTrust||U.S. Bank||Wells Fargo|
Interest rates are an extremely important part of the mortgage search process, but they shouldn’t be all you take into account. So although all of the competing lenders above have their own mobile and online experiences, no one solely specializes in it like Rocket Mortgage. In turn, there aren’t many alternatives that do exactly what this lender can do.
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Refinancing Rates With Rocket Mortgage
Rocket Mortgage has a number of different refinancing options, and they’re divvied up by your purpose for doing so. This could be to lower your monthly payments, consolidate existing debt, shorten your loan’s term length or get cash based on your home equity.
The federal government’s Home Affordable Refinance Program (HARP) is available through Rocket Mortgage and Quicken Loans. HARP is perfect for those who find themselves with very little equity in their home or carrying a loan balance worth more than their home’s overall value. General eligibility requirements include the following:
- You’re up to date on your mortgage payments
- While you cannot have a more than 30-day late payment over the past six months to remain eligible, you can have up to one such payment over the last year
- Your loan was originated no later than May 31, 2009
- Your loan is backed by either Fannie Mae or Freddie Mac
- Your property is your primary residence, a one-unit second home or an up to four-unit investment property
- You have a loan-to-value ratio greater than 80%
Rocket Mortgage provides an eligibility test that will let you know if you’d qualify for HARP. There’s also a hotline where you can speak to a mortgage professional if you have more questions.
Should You Get a Mortgage from Rocket Mortgage?
Rocket Mortgage is a great lender, not only for those who want plenty of choices for a new mortgage or refinancing loan, but also for anyone who wants ample access to online and mobile app-based features. But if you’re someone that wants a more hands-on approach, this might not be the best pick for you.
As with many online lenders, those who wish to work with Rocket Mortgage must begin the application process to get a full view of their mortgage options. You might find this frustrating, as it may stifle your ability to compare rates and loan choices between various lenders from the get-go. In general, though, its interest rates and APRs are pretty solid. If you’re particularly interested in an ARM, Rocket Mortgage’s rates will be much more favorable.
Tips For Handling a New Mortgage
- The SmartAsset financial advisor matching tool is a great resource if you want to make sure a prospective mortgage will fit in neatly with the rest of your financial life. Simply fill out the questionnaire as accurately as you can, and you’ll be paired up with as many as three financial advisors that are near you.
- It might be best to lower your costs for a few months when you initially get a mortgage. This will help you to truly gauge how these new loan payments will affect your overall financial life.